SectorConstruction
RegionAsia (Subsidiary of Intl. Group)
Size240 Employees
Path chosenShrink to the core, then regrow
22 months
to break-even
100
core roles secured
The Challenge
A subsidiary of a global construction conglomerate, employing 240 staff in Asia, was bleeding cash. The local entity had over-expanded during a boom period and was now burdened with high fixed costs and a portfolio of non-paying clients. The international parent company was willing to provide limited support but demanded a clear path to self-sufficiency or they would pull the plug.
Our Solution
We implemented a “Deep Freeze & Reset” strategy. The goal was to shrink the company to a defensible core and slowly rebuild.
Execution
01
Settlement Campaign
We launched an aggressive legal and commercial campaign against non-paying customers. Instead of lengthy litigation, we negotiated settlement contracts: This brought in immediate, critical cash flow.
02
Workforce Rightsizing
Painful but necessary: We executed a redundancy plan affecting 60% of the workforce (140 roles), removing all non-essential overhead and consolidating project teams.
03
Skeleton Mode
The remaining 100 staff were placed on a “minimal operation” (austerity mode). Salaries for senior management were temporarily deferred, and all non-project spending was frozen.
04
Parental Lifeline
Demonstrating this decisiveness unlocked a conditional cash injection from the parent group to cover the severance packages and stabilize working capital.
The Outcome
The company survived the “winter.” By shedding half its weight and recovering bad debts, the cash burn stopped. After 22 months of austerity, the company stabilized, achieved break-even, and slowly began hiring again, this time with strict financial controls. It remains active today as a leaner, profitable specialist builder.